Call from "junk" buyer/seller on ebay
logger7
Posts: 8,684 ✭✭✭✭✭
I got a call from a gentleman earlier in the week who moved up from NYC who was looking for quantities of old nickels and cents he sells on ebay.
He told me he recently bought 70,000 wheat cents for resale on ebay and is willing to go through them and sell in lots. He looks for non-silver items. He says he nets around $500 a week going around to shops and buying product that he can list on ebay. Is this a successful business plan? For many this would be way too tedious to engage in.
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It sounds a lot like the Dollar General approach: small margin with fast turnover.
He must be making money or he would not continue. That being said, the profit margin is likely thin, but he is willing to put in the work. Cheers, RickO
500/week is decent for a side hustle. That's about where I was with coins 2 years ago. Once you have that kind of traction, it's easy to scale up as long as you put the $ back into the business... which is easier said than done.
"It's like God, Family, Country, except Sticker, Plastic, Coin."
He makes more in a week than I have in 14 years of collecting.
$26,000 @ year? Must have time on his hands and other "income."
I don’t know if it’s a successful business plan, but, sure, he can make money. That said, my evaluation always comes down to $/hr or value of time. So if his total time of finding these deals is 10 hours/week, and then there is 10 hours per week searching them, and then 10 hrs per week listing them, and then 10 hours per week packaging and shipping them. Then he is making $12.5/hr. Then you need to consider keeping records and paying taxes.
So all in all, yes he can make money. Is it a worthwhile use of time or good job, that’s left to each person to decide.
As an aside, this mindset was told to me by an old guy at the horse races many years ago. He would goto Saratoga each summer and bet on the horses and insisted he could make 7-10% (or some level of returns) consistently. That said, he was at the racetrack each day and for all of the races. So he said, sure, pro gamblers can make money, but it’s really no different than a job.
Many small businesses that appear to be making money can many times be attributed to the owner's discounted view of their own labor. They might not be willing to work at any other job for the hourly wage this results in.
Jim
When a man who is honestly mistaken hears the truth, he will either quit being mistaken or cease to be honest....Abraham Lincoln
Patriotism is supporting your country all the time, and your government when it deserves it.....Mark Twain
If the gent buys ones that are unsearched, he may be lucky enough to hit a key date every now and then but most likely just turning them over for a small profit gives the man something to do that he feels is worthwhile, maybe a pass time more than a business venture. gotta keep the bones and mind moving!!
The best thing about working for very little as a small business owner is that you do what you want whenever you want.
i've seen a few on ebay do it. there is/was an older guy dave enders? or something that at one time (for a long time) was chopping up mint sets etc and had some pretty impressive results. looked like it was the make it up in volume. so long as there is a customer base, that is regular, it will work out. even better if there are 2-3 people working it. it is plain astonishing just how much more 1-2 extra people can make/accomplish if they are committed.
i've seen this with ebay resellers of thrifts/garage sale/marketplace etc buyers and sellers. it is nice because if one gets tired of doing one aspect, they can switch up duties to help keep the doldrums/monotony at bay. i've wanted to hire people badly over the years but when it comes to numismatics and other valuable collectables, one needs be quite careful unfortunately. i even thought of the temp services but my biggest concern with people usually isn't the initial person but whom is in their circle of friends/family etc. and everyone loses because of this inherit risk.
I will agree with you in that regard.
Jim
When a man who is honestly mistaken hears the truth, he will either quit being mistaken or cease to be honest....Abraham Lincoln
Patriotism is supporting your country all the time, and your government when it deserves it.....Mark Twain
I'd rather make $20/hr and be my own boss than make $40/hr and deal with a-holes.
My wife is pushing me to quit my day job and just deal on my own... Given how my work is going, it's awfully tempting.
"It's like God, Family, Country, except Sticker, Plastic, Coin."
Proctologists make way more than $40/hr.